Chinese copper market has buoyant November

Statistics released by the General Administration of Customs of China (GACC) and published by Reuters show scrap buyers in China increased their appetite for red metal scrap in November.

The GACC figures show more than 161,000 metric tons of copper-bearing scrap entering China in November, marking a 43.2 percent rise from the prior month.

The nation also imported about 43 percent more copper cathode by volume in November and 29 percent more copper concentrates. It is unclear whether the heavier buying represents confidence in intended economic stimulus measures proposed by the Chinese government, or whether it represents seasonal stockpiling ahead of the holiday season in Europe and North America, which is followed by Chinese New Year about one month later.

Buyers of aluminum did not show a greater interest in that metal. The volume of inbound aluminum scrap to Chinese ports declined by 16 percent in November compared with October, according to the GACC.

Although still representing a tiny portion of feedstock for China’s sizable steel industry, the imported ferrous scrap volume in November, at about 105,000 metric tons, rose by nearly 24 percent compared with October. The 105,000 tons figure is nearly double the amount of scrap China’s steelmakers imported one year earlier.

On the geopolitical front, Reuters notes China exported more than 80,000 metric tons of alumina to Russia in November, “up 48,746.95 percent from the 164 metric tons shipped there a year ago,” according to the news agency.

Reuters says the increased exports from China to Russia came after Australia this March imposed an export ban on alumina and aluminum ores to Russia as part of its sanctions regime against that nation.